UAE labour laws: can a prospective employer force you to provide salary history?

Hiring companies asking interview candidates to provide proof of their pay has been common practice for years, but is it outdated?

A recent post online has reignited a longstanding debate among recruiters and human resources experts, with many deeming the request unethical.

They said revealing old pay slips would have a negative impact on a candidate receiving their true worth. But others argued it was a way of weeding out those lying about inflated earnings.

In my experience, I have predominantly seen it happen to people applying for low level positions. It happens a lot in the blue collar worker industries

Sarah Brooks,
Fikrah HR

Dr Hassan Elhais, a legal consultant with Al Rowaad Advocates, said there is no written legislation to support either argument.

“[Requesting a payslip] is not prohibited by law, but in addition, it is not a legal requirement for the candidate to present proof of previous salary either,” he said.

Some recruiters argued forcing an individual to reveal salary information could damage a brand, promote bad company culture and put good candidates off taking a role.

Here, The National has explored the reasons this is done, whether it is fair to job applicants, and if there are different ways of achieving the same outcome.

Having worked as a HR director in the UAE for 15 years, Sarah Brooks, owner of Fikrah HR, said it was a short-sighted approach when hiring good candidates.

Louise Vine, a recruiter in Dubai, says asking for salary certificates or payslips is antiquated. Supplied

“In my experience, I have predominantly seen it happen to people applying for low-level positions. It happens a lot in the blue-collar worker industries,” she said.

“You often have certain individuals working in administrative HR roles or finance teams within a company that make the final decision.

“For example, if they have a budget of Dh4,000 for a role, the candidate is asking for Dh3,500 but was previously on Dh2,5000, they would likely offer Dh3,000.

“If the individual accepts the position then later finds out that his or her co-workers are on a higher salary, it can lead to higher staff turnover as they feel undervalued.”

Louise Vine, managing director at Inspire Selection, a recruitment agency in Dubai, said asking for salary certificates or payslips was antiquated.

“We often see this happening right at the end of the recruitment process, after many rounds of interviews with an intention on both sides to move forward with a job offer,” she said.

“Candidates often see this as a big red flag and would rather not work for an organisation which puts such little trust in them.

“If an employer finds a suitable candidate and has the budget to pay what the candidate wants, why should it matter what the candidate is already earning?”

Robust recruitment process

People move on to new jobs for many reasons, but salary is often the biggest driver.

Recruiters said on-boarding candidates on the budgeted salary was the fairest way to please all parties.

And having a more robust recruitment process to define a talent's worth was the best way to build a strong team.

Praveen Srinivasan, head of human resources at FDC International, an IT distributor, said if a candidate is underpaid in a previous role, they should not be benchmarked against that salary for future roles.

“I do not see any logic in asking for proof of payment slips. As a HR professional I would have already analysed the current market standards and understood the budget for the position for which I am planning to hire,” he said.

“If a shortlisted candidate is being paid lower than the market standards, his or her salary expectations could be one and a half times what their current salary is.

“If they are judged on a current salary, they will never be able to progress. It is up to us as HR professionals to fully assess whether a candidate is suitable for a job or not, without looking at their wage slip.”

But some experts said there should be an exception to the rule. For instance, when recruiting for a commission-based role or within certain industries, requesting previous payslips could be a good way of ascertaining whether an applicant has been successful in reaching targets.

Additionally, they argued it was a good way of checking if a candidate is genuine or not.

"Salary certificates can be seen as a measure of a candidate's integrity, presenting their actual salary vis-a-vis their declared salary while undergoing the screening process," said Elaine Magbag from Black Pearl, a HR consultancy in the UAE.

"Any discrepancy will be a big red flag for heavily audited sectors such as banking and financial institutions.

"The other side of the argument is that salary certificates can act as data in benchmarking and reviewing the company's compensation structure.

"This will help in making companies a viable place of work by keeping their salaries competitive with the current market."

But in an era of increasing value in diversity and equality, she said salary certificates "should not discriminate" and offers should not be anchored on them.

Another HR consultant commented online: “[We] are not buying cryptocurrency here, we are hiring someone who will make or break an organisation," he said.

“Payslips, bank statements and appointment letters help to know the exact [cost to the company] of the candidate.

“Today, many candidates lie about their actual [salary slips] on the basis they are looking for a hike.”

While another said recruiters should not be "penalised for carrying out verification checks" on salaries.

“It is not about having a strong process, it is about trust,” he said.

“The more information you gather from a person with written proof, your trust will go stronger.”

UAE Salary Guide - in pictures

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Start-up hopes to end Japan's love affair with cash

Across most of Asia, people pay for taxi rides, restaurant meals and merchandise with smartphone-readable barcodes — except in Japan, where cash still rules. Now, as the country’s biggest web companies race to dominate the payments market, one Tokyo-based startup says it has a fighting chance to win with its QR app.

Origami had a head start when it introduced a QR-code payment service in late 2015 and has since signed up fast-food chain KFC, Tokyo’s largest cab company Nihon Kotsu and convenience store operator Lawson. The company raised $66 million in September to expand nationwide and plans to more than double its staff of about 100 employees, says founder Yoshiki Yasui.

Origami is betting that stores, which until now relied on direct mail and email newsletters, will pay for the ability to reach customers on their smartphones. For example, a hair salon using Origami’s payment app would be able to send a message to past customers with a coupon for their next haircut.

Quick Response codes, the dotted squares that can be read by smartphone cameras, were invented in the 1990s by a unit of Toyota Motor to track automotive parts. But when the Japanese pioneered digital payments almost two decades ago with contactless cards for train fares, they chose the so-called near-field communications technology. The high cost of rolling out NFC payments, convenient ATMs and a culture where lost wallets are often returned have all been cited as reasons why cash remains king in the archipelago. In China, however, QR codes dominate.

Cashless payments, which includes credit cards, accounted for just 20 per cent of total consumer spending in Japan during 2016, compared with 60 per cent in China and 89 per cent in South Korea, according to a report by the Bank of Japan.

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UAE labour laws: can a prospective employer force you to provide salary history?

Some HR experts say being asked to reveal old payslips could promote bad company culture

Robust recruitment process

UAE Salary Guide - in pictures

Notable Yas events in 2017/18

While you're here

57%20Seconds

Western Region Asia Cup Qualifier

Switching%20sides

Start-up hopes to end Japan's love affair with cash

How to donate

Avatar: Fire and Ash

While you're here

Company Profile

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AI traffic lights to ease congestion at seven points to Sheikh Zayed bin Sultan Street

Dust and sand storms compared

'Brazen'

WWE TLC results

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